Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Thu Apr 25 2013 16:04:33

Amazon Releases First Quarter 2013 Earnings, Sales up 22 Percent

By: Ina Steiner

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Amazon's conference call with analysts is at 5:00 pm EST today, here is the company's press release announcing first quarter 2013 earnings, you can view the full release with tables on the Amazon Investor Relations website.

Amazon.com Announces First Quarter Sales up 22% to $16.07 Billion

SEATTLE--Amazon.com, Inc. (NASDAQ:AMZN) today announced financial results for its first quarter ended March 31, 2013.

Operating cash flow increased 39% to $4.25 billion for the trailing twelve months, compared with $3.05 billion for the trailing twelve months ended March 31, 2012. Free cash flow decreased 85% to $177 million for the trailing twelve months, compared with $1.15 billion for the trailing twelve months ended March 31, 2012. Free cash flow for the trailing twelve months ended March 31, 2013 includes fourth quarter 2012 cash outflows for purchases of corporate office space and property in Seattle, Washington, of $1.4 billion.

Common shares outstanding plus shares underlying stock-based awards totaled 471 million on March 31, 2013, compared with 464 million one year ago.

Net sales increased 22% to $16.07 billion in the first quarter, compared with $13.18 billion in first quarter 2012. Excluding the $302 million unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter, net sales grew 24% compared with first quarter 2012.

Operating income decreased 6% to $181 million in the first quarter, compared with $192 million in first quarter 2012. The unfavorable impact from year-over-year changes in foreign exchange rates throughout the quarter on operating income was $12 million.

Net income decreased 37% to $82 million in the first quarter, or $0.18 per diluted share, compared with $130 million, or $0.28 per diluted share, in first quarter 2012.

"Amazon Studios is working on a new way to greenlight TV shows. The pilots are out in the open where everyone can have a say," said Jeff Bezos, founder and CEO of Amazon.com. "I have my personal picks and so do members of the Amazon Studios team, but the exciting thing about our approach is that our opinions don't matter. Our customers will determine what goes into full-season production. We hope Amazon Originals can become yet another way for us to create value for Prime members."

Highlights
Amazon.com expanded selection for Prime Instant Video, announcing new licensing agreements with A+E Networks, CBS Corporation, FX, PBS Distribution and Scripps Networks Interactive, bringing exclusive access to popular television series such as Downton Abbey, Justified and Under the Dome as well as shows from HGTV, DIY Network, Food Network, Cooking Channel and Travel Channel. Prime Instant Video now includes more than 38,000 movies and TV episodes that are available for Prime members to watch at no additional charge.

Amazon Studios, the original film and series production arm of Amazon.com, debuted 14 original comedy and kids pilots. The pilots, which feature stars such as John Goodman, Jeffrey Tambor and Bebe Neuwirth, are available exclusively at www.amazonoriginals.com and on the Amazon Instant Video app for Kindle Fire HD, Kindle Fire, iPad, iPhone, iPod touch, Roku, Xbox 360, PlayStation 3, Wii and Wii U, as well as hundreds of other connected devices. Viewer feedback will help determine which pilots Amazon Studios will produce into full series.

Amazon expanded the popular Kindle Fire feature "X-Ray for Movies" to TV shows, bringing the power of IMDb directly to the most popular TV shows on Kindle Fire. With a single tap viewers can discover the names of actors and what they've been in, without even leaving the TV show.

Kindle Owners' Lending Library has grown to over 300,000 books available to borrow for free as frequently as a book a month, including many titles exclusive to Amazon.

Amazon announced the launch of the Amazon MP3 store optimized specifically for Safari browser. For the first time ever, iPhone and iPod touch users can discover and buy digital music from Amazon's 22 million song catalog. Amazon also announced its Cloud Player app for iPad and iPad mini, enabling customers to play or download music stored in Cloud Player to their device, play music that is already stored on their device, and manage or create playlists.

Amazon announced it has extended its popular AutoRip services to vinyl records. AutoRip provides customers with free MP3 versions of CDs and vinyl records they purchase from Amazon. Additionally, customers who have purchased AutoRip CDs or vinyl records at any time since Amazon first opened its Music Store in 1998 will find MP3 versions of those albums in their Cloud Player libraries – also automatically for free.

Amazon announced the launch of Kindle Fire HD 8.9" β€” the large-screen version of its best-selling tablet β€”for the U.K., Germany, France, Italy, Spain and Japan. With the expansion of Kindle Fire HD 8.9" to Europe and Japan, Amazon also announced a lower price on Kindle Fire HD 8.9" in the U.S., with the Wi-Fi version starting at $269 and the 4G version starting at $399.

Amazon Publishing, the publishing arm of Amazon.com, announced that it will start paying authors their royalties monthly, 60 days in arrears β€” allowing authors to receive payment more frequently than the twice-a-year industry standard.

Amazon acquired Goodreads, a leading site for readers and book recommendations that helps people find and share books they love. Goodreads members can discover new books by seeing what their friends are reading or by using the Goodreads Book Recommendation Engine; share ratings and recommendations; track what they have read, and list what they want to read.

Amazon Web Services (AWS) announced the launch of Amazon Redshift, a fast and powerful, fully managed, petabyte-scale data warehouse service in the cloud for a fraction of the cost of a traditional data warehouse.

AWS launched AWS OpsWorks, an application management solution for the complete lifecycle of complex applications, including resource provisioning, configuration management, deployment, monitoring, and access control.

AWS announced Amazon Elastic Transcoder, a highly scalable service for transcoding video files between different digital media formats. Amazon Elastic Transcoder manages all aspects of the transcoding process transparently and automatically, providing scalability and performance by leveraging AWS services.

AWS announced AWS CloudHSM, a new service enabling customers to increase data security and meet compliance requirements by using dedicated Hardware Security Module (HSM) appliances within the AWS Cloud. The CloudHSM service allows customers to securely generate, store and manage cryptographic keys used for data encryption in a way that keys are accessible only by the customer.

AWS has lowered prices 31 times since it launched in 2006, including 7 price reductions so far in 2013.

Financial Guidance
The following forward-looking statements reflect Amazon.com's expectations as of April 25, 2013. Our results are inherently unpredictable and may be materially affected by many factors, such as fluctuations in foreign exchange rates, changes in global economic conditions and consumer spending, world events, the rate of growth of the Internet and online commerce and the various factors detailed below.

Second Quarter 2013 Guidance
Net sales are expected to be between $14.5 billion and $16.2 billion, or to grow between 13% and 26% compared with second quarter 2012.

Operating income (loss) is expected to be between $(340) million and $10 million, compared to $107 million in the comparable prior year period.

This guidance includes approximately $340 million for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions, investments, or legal settlements are concluded and that there are no further revisions to stock-based compensation estimates.

A conference call will be webcast live today at 2 p.m. PT/5 p.m. ET, and will be available for at least three months at www.amazon.com/ir. This call will contain forward-looking statements and other material information regarding the Company's financial and operating results.




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Readers Comments

Perminate Link for Amazon Releases First Quarter 2013 Earnings, Sales up 22 Percent   Amazon Releases First Quarter 2013 Earnings, Sales up 22 Percent

This user has validated their user name. by: Ming the Merciless

Thu Apr 25 21:52:00 2013

Although Amazon could certainly do better by its 3P sellers. this report reflects the fact that Amazon is run by adult, professional, and very smart business people.

Ebafia, on the other hand, is run by sociopathic middle school mentality junior achiever wannabes who couldn't figure and still haven't figured how to monetize digital content.

I'll say it again. Is The Ho an Amazon plant?

Perminate Link for Amazon Releases First Quarter 2013 Earnings, Sales up 22 Percent   Amazon Releases First Quarter 2013 Earnings, Sales up 22 Percent

This user has validated their user name. by: Al G

Fri Apr 26 08:16:26 2013

Not only smart, but persistent.

Ask Jeff Bezos about the years of unprofitably when he was growing the company.

Somehow Wall St bought the dream.

Ebay on the other hand was the Goose That Laid The Golden Egg, but has not learned from that experience of being The Venue and is flailing around whilst acquiring resources it thinks it needs (like Skype).

Perminate Link for Amazon Releases First Quarter 2013 Earnings, Sales up 22 Percent   Amazon Releases First Quarter 2013 Earnings, Sales up 22 Percent

by: Moonwishes This user has validated their user name.
Web Site

Fri Apr 26 08:17:36 2013

Interesting. When selling on ebay, my figures never reflected what they were saying. I have currently been selling on Amazon as another venue and my sales are certainly up. I wasn't selling there in the first three months of 2012, so I compared the last three months of 2012 to the first three of 2013. I'm up 40%. I'll take it :)  

Perminate Link for Amazon Releases First Quarter 2013 Earnings, Sales up 22 Percent   Amazon Releases First Quarter 2013 Earnings, Sales up 22 Percent

by: pace306 This user has validated their user name.

Fri Apr 26 09:24:21 2013

Im %100 in agreement with MING.

While Amazon does have some onerous 3P seller rules and regulations (blocking categories, blocking items, forcing you to only list something as USED etc) they at least TRY to make selling a business instead of a game.

With eBay, everything is a game - and when you have to deal with one of eBays precious snowflakes - it all falls apart. eBay tries to game you out of your funds PERIOD. Dealing with eBay makes you feel slimy, reminds you of how uncaring they are all while they cry SELLER PROTECTION from the roof tops. Its really the tree falling in the forest - no ones sure it makes a sound.

Getting back to Amazon ... these guys are %100 serious about business, how they run thier business, the tools they give you when you do sell on thier site - none of the 1/2 baked ideas like eBay.

They work hard and deserve the profits they make !

Perminate Link for Amazon Releases First Quarter 2013 Earnings, Sales up 22 Percent   Amazon Releases First Quarter 2013 Earnings, Sales up 22 Percent

This user has validated their user name. by: Rexford

Fri Apr 26 09:47:58 2013

Amazon has stability.  Ebay is all over the place. Change after change after change so that people at eBay can justify their existence.

eBay once had a good thing, something unique to themselves, but someone with no vision and who lacked the ability to capitalize on that success stepped in and disruptively "innovated".   I use that term innovated very loosely.  It should actually read disruptively destroyed.

Perminate Link for Amazon Releases First Quarter 2013 Earnings, Sales up 22 Percent   Amazon Releases First Quarter 2013 Earnings, Sales up 22 Percent

This user has validated their user name. by: Forestt

Fri Apr 26 11:45:29 2013

For me, the most important differentiation between Amazon and eBay is customer service. Amazon excels at customer retention (both consumer and merchant) while eBay fails miserably at both.

Amazon has also grown their infrastructure from within the company and not by building ad hoc through acquisitions.

One reason Amazon understands merchants is because they are merchants themselves at the core of the business. They understand the business while eBay is just a website trying to play e-commerce.

Perminate Link for Amazon Releases First Quarter 2013 Earnings, Sales up 22 Percent   Amazon Releases First Quarter 2013 Earnings, Sales up 22 Percent

This user has validated their user name. by: Nolle

Sat Apr 27 09:42:54 2013

Ebay may have killed the small seller, but Amazon will bury them.



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